Standardization and Simplification

Definition:

Standardization is establishing benchmarks for measuring quality, quantity, value, performance, etc. In inventory, it means reducing the variety of products, components, or materials used. It ensures uniformity.

Advantages of Standardization:

• Design: Fewer specs & drawings.
• Manufacturing: Lower costs, better quality, easier training.
• Marketing: Increased sales from proven quality & lower costs, improved profit margin.
• Production Planning: Improved methods, tool design, better layout and process flow.
• Production Control: Better planning, reliable delivery promises.
• Purchase/Stock Control: Reduced paperwork, fewer requisitions.
• Quality Control: Easier inspection, clearly defined standards.
• Other: Benefits Work Study (easier ops breakdown) and Costing (standard costing implementation).

Disadvantages of Standardization:

1. Reduced Choice: Limited variety may lose customers.
2. Resistance to Change: Standards can hinder innovation.
3. New Model Difficulty: Less flexible production, high costs favor larger companies.

Simplification

Definition:

Simplification is reducing the variety of manufactured products, components, materials, and designs. It's closely related to standardization.

Advantages of Simplification:

1. Reduced Variety: Fewer parts, variations, and product changes.
2. Increased Volume: Higher production volume for remaining products.
3. Faster Delivery: Quicker delivery and better after-sales support.
4. Lower Inventory: Reduced stock and improved inventory control.
5. Lower Costs: Decreased production expenses.
6. Lower Prices: More affordable products for consumers.
7. Improved Quality: Enhanced product quality.